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ChinaCast says class action suit filed vs. company, sees other suits possible

ChinaCast Education disclosed that on May 25, a purported class action lawsuit was filed in the U.S. District Court for the Central District of California against the company, former chairman and CEO Ron Chan Tze Ngon and former CFO Antonio Sena. The complaint generally alleges that, between February 14, 2011, and April 2, 2012, all of the defendants violated SEC regulations in making false and misleading statements and failing to disclose material adverse information about the company’s business, operations and future prospects. The complaint seeks unspecified damages, interest, attorneys’ and experts’ fees and other costs. The company said it anticipates that additional similar lawsuits may be filed.